The Cost of Stupid

I want to tell you about a friend of mine. He's 29 years old and I will affectionately call him a loser. He's a likeable guy; talented, friendly, and even intelligent. He's also a moron.

We spoke not long ago about how things were going for him. He jumps back in forth between menial jobs, doesn't have a drivers license, and isn't allowed back in the state of Illinois. Why? Because the price of stupidity is high.

A few years ago, he got some speeding tickets and chose not to pay them. This led to a warrant for his arrest and a suspended license. The suspended license led to more tickets and more warrants. He eventually spent two weeks in jail before deciding to leave the great state of Illinois where the warrants are still outstanding.

At this point, he estimates it would cost him around $13,000 to put himself in good standing with the state of Illinois. Until then, he can't get a license in Missouri and he can't get a "real" job because he can't pass a background check.

So what is the price tag for his stupidity? $13,000 is the minimum. When you factor in the loss of productivity over the last ten years, I fear the cost will be immeasurable.

I work in the insurance business and I've recently begun learning about the world of "non-standard" auto insurance. These would be insurance companies that specialize in high-risk drivers. When you see ads for "Cheap Insurance", these are the non-standard companies. But how cheap is it?

Most of the clientele are poor, often in trouble for various driving related offenses and most don't read financial blogs. When they go for their cheap insurance, they pay-
$50 up front just to do business. This is in addition to their actual premium.
$25 to file sr-22 form with the state showing proof of insurance
$20 every time they make a change to their policy.
$20 to reinstate the policy every time they let their coverage lapse.

The numbers may not look like much, but these are fees that you would never expect to pay with a standard company like State Farm, All State, etc. The point being, the more mistakes you make, the more you better expect to pay for them. To quote the late John Wayne, "Life is hard. It's even harder when you're stupid."

Welcome to My 2nd Million

Greetings Personal Finance fans. You have stumbled across my quest for my 2nd million. No, I'm not already a millionaire, it's an old joke. I gave up on the 1st million because it wasn't working.

My quest for my 1st million got me nothing but debt. At 25 old, I could have been that nameless face you read about in every article detailing how poorly 20-somethings handle their money. I was making every mistake while thinking to myself that I was on the right track.

Five years later, and I'm finally on track. My family has been debt free but the house for almost two years now. From the day that we began our new path, it's been my desire to offer financial guidance to others. I am a Dave Ramsey Certified Counselor and I'm currently trying to start a finance ministry in our church.

What makes me any different from the hundreds of other PF bloggers? Probably not much, except location and background. I'm a small town boy living in rural Missouri. I live debt free in the 2nd poorest county in the state. Looking at the level of poverty that surrounds me breaks my heart. So I want to do whatever I can to help the ones that want to change. I suspect that my posts might venture toward the lower end of the financial spectrum; issues that would affect people who are just trying to get by.